Cyberattack Hits US Defense Supplier Of Critical Chips, Impacting “Ability To Fulfill Orders”

US chipmaker Microchip Technology disclosed that an “unauthorized party” had compromised “certain servers and some business operations.” This cyberattack raises significant concerns due to Microchip’s critical role in supplying advanced chips to the US defense industry, supporting critical systems such as precision strike and missile defense weapons, radar systems, autonomous platforms, image processing, and command and control centers.

Microchip first detected “potentially suspicious activity involving its information technology (“IT”) systems” on Saturday, the Chandler, Arizona-based company wrote in an SEC filing on Tuesday.

“Upon detecting the issue, the Company began taking steps to assess, contain and remediate the potentially unauthorized activity,” Microchip said.

Microchip admitted that some of its manufacturing facilities had to operate at reduced capacity because of the cyber incident:

As a result of the incident, certain of the Company’s Company’s manufacturing facilities are operating at less than normal levels, and the Company’s ability to fulfill orders is currently impacted. The company is working diligently to bring the affected portions of its IT systems back online, restore normal business operations and mitigate the impact of the incident.

Cyber blog BleepingComputer noted, “While the company has not yet disclosed the nature of the incident, the SEC filing suggests it was ransomware. However, no ransomware operation has claimed responsibility for the attack.”

The cyber incident comes as Washington is supercharging efforts to rebuild the nation’s chip manufacturing base to mitigate supply chain snarls from Asia. This incident is particularly alarming because if the country were locked in a major conflict directly with Russia and/or China, and a cyber incident brought down chip production for defense applications, it would have real consequences on the modern battlefield.